Question

The investigation of materials price variance usually begins in the accounts:__________

a) payable department.
b) first production department.
c) controller's office.
d) purchasing department.

Answer 1

Answer:

Option d: Purchasing department

Step-by-step explanation:

Material Price Variance is simply interpreted as the difference that occurs or brought about by the the actual and the budgeted cost for materials multiplied by the actual quantity used. It is known as

(Actual Price- Standard Price) * Actual Quantity